Conveyance reimbursement during covid

A private company in mumbai offers local conveyance reimbursement for all employees travelling to office during covid to compensate against absence of public transport (only essential services workers were permitted public transport during that period). The actual expenses are claimed by the employees and reimbursed in full. The reimbursed amount now reflects under Salary --> Perquisites --> Free or Concessional travel with no tax exemption.

Is there no tax exemption in the above case? Since it's more of an expense claim reimbursement and not income. Is this specified under any provisions of the IT act?

Replies (2)
Quick Summary
This discussion explores whether local conveyance reimbursement provided by a Mumbai-based private company to employees travelling to the office during COVID-19 is taxable. The company reimbursed full expenses due to public transport restrictions. However, the reimbursed amount is appearing as taxable perquisites in employee Form 16s, with no tax exemption noted. The core question is whether this reimbursement, viewed as an expense claim rather than income, should be tax-exempt under IT Act provisions, similar to staff welfare expenses or company-provided transport.

As per my understanding it.is not income of the employees.
it is expense of the company. you need to group such expense under same head where you group.staff welfare
or any like expenses incurred by company. just I'm case of staff bus facility arranged by employers to employee.
in no way you can treat it.as perquisites.

Thank you so much for your response. But since the employer has already included the amount as income in Form 16 is there any clause under which one could claim tax exemption?

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